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Section 83

Late submission penalty Penalties for late submission and failure to submit returns.

(1) A person who submits a tax return after the due date shall be liable to a penalty—
  • (a) of twenty five percent of the tax due or ten thousand shillings whichever is higher, if it is in relation to a return required to be submitted on account of employment income; 
  • (b) five one thousand shillings if it is in relation to a return required to be submitted under Turnover Tax; or (TaxLAA-No1-2020 wef-25April2020)
  • (c) in any other case— (i) five per cent of the amount of tax payable under the return; or (ii) twenty thousand shillings, Finance Act, 2018Effective 1st July 2018 
  • (c) five per cent of the amount of tax payable under the return or ten thousand shillings, whichever is the higher, if it is in relation to value added tax or excise duty; Finance Act, 2018Effective 1st July 2018 
  • (d) in any other case—(Finance Act, 2018Effective 1st July 2018 )
    • i) five per cent of the amount of tax payable under the return or twenty thousand shillings, whichever is the higher, in respect of a person other than an individual; or 
    • ii) five per cent of the amount of tax payable under the return or two thousand shillings, whichever is the higher, for an individual. 
Provided that in the calculation of the late submission penalty for purposes of this section, the amount of tax payable or due under the return shall be reduced by the amounts already paid and withholding tax credits. Finance Act, 2019Effective 7th November 2019

(1A) An export processing zone enterprise that fails to submit a return as required under paragraph 4 of the Eleventh Schedule to the Income Tax Act shall be liable to a penalty of twenty thousand shillings per month for each month or part thereof that the failure continues.  (TPAA 2024 wef 27th December, 2024 S10)

 (2) A person who fails to submit a document, other than a tax return, as required under a tax law by the due date shall be liable to a penalty of one thousand shillings for each day or part day of default but the total penalty shall not exceed fifty thousand shillings.

(3) For the purposes of subsection (2), a person ceases to be in default at the time the document is received by the Commissioner.

83A Late Payment penalty 

Finance Act, 2018 Effective 1st July 2018 
A person who fails to pay tax on the due date shall be liable to pay a late payment penalty of five percent of the tax due and payable.

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